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Supply Planning & Procurement Processes Flashcards

7 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Supply Planning & Procurement Processes flashcards as text

  1. A planner discovers that a supplier's quoted lead time has increased from 4 weeks to 7 weeks. What is the most immediate impact on the supply plan?

    Answer: Planned order release dates must be moved earlier to prevent stockouts

    Longer lead times require earlier order releases to ensure material arrives on time; the reorder point also increases.

  2. Which procurement approach is most effective for reducing the total number of suppliers while maintaining supply continuity?

    Answer: Supplier rationalization

    Supplier rationalization systematically reduces the supply base to a smaller, more strategic set of preferred vendors.

  3. In a supply chain context, 'supply variability' refers to:

    Answer: Unpredictability in supplier lead times, quality, or quantity delivered

    Supply variability encompasses all sources of unreliability from the supply side, including late deliveries and quantity shortages.

  4. Which of the following best describes a 'supplier development' initiative?

    Answer: Collaborating with an existing supplier to improve their capabilities and performance

    Supplier development involves investing time and resources to help an existing supplier improve quality, delivery, or capacity.

  5. A company implements postponement as a supply strategy. Which scenario best illustrates this concept?

    Answer: Deferring final product configuration until a customer order is received

    Postponement delays differentiation to the last possible moment, allowing generic intermediates to serve multiple market configurations.

  6. Which document does a supplier send to notify a buyer of an impending shipment, including item details, quantities, and expected arrival?

    Answer: Advanced Shipping Notice (ASN)

    An ASN is sent by the supplier before shipment to inform the buyer of what is coming, enabling advance preparation for receiving.

  7. When calculating safety stock using the statistical method, which two inputs are most critical?

    Answer: Demand variability and supply lead time variability

    Statistical safety stock formulas primarily rely on the standard deviation of demand and lead time variability to compute buffer requirements.